Section R4-39-106. Requirements for a Conditional License to Oper- ate a New Private Non-accredited Degree-granting Institution in Arizona

A.      A person shall not operate a new private non-accredited degree-granting institution without a conditional license granted by the Board.

B.       The Board shall not grant a conditional license to an applicant, if:

1.        Within 10 years before the date of filing an application packet required in subsection (D), an individual with 20 percent or more ownership in the applicant institution has been convicted in this state or any other state or jurisdic- tion of a felony or any crime related to the operation of an

educational institution, unless the conviction has been absolutely discharged, expunged, or vacated;

2.        Within 10 years before the date of filing an application packet required in subsection (D), a person with 20 per- cent or more ownership in the applicant institution has had a license to operate a vocational program, vocational institution, degree program, or degree-granting institution revoked in this state or any other state or jurisdiction; or

3.        The applicant provides false or misleading information on or with an application required by this Section.

C.      The Board shall grant a conditional license to an applicant if:

1.        The applicant provides the information required in sub- section (D); and

2.        The information provided demonstrates:

a.         Compliance with A.R.S. § 32-3022(C); and

b.        The ability to provide educational services as repre- sented to the public.

D.      An applicant for a conditional license shall submit to the Board an application packet including:

1.        The filing fee required under R4-39-201;

2.        The information and documentation required in R4-39- 104(D)(2) through (D)(17);

3.        The name of each accrediting agency to which the appli- cant will apply for accreditation of the applicant’s pro- grams or the institution through which the programs are operated;

4.        For   each  accrediting   agency  named  under  subsection

place of business to determine compliance with subsection (C).

G.  While conditionally licensed, a licensee:

1.        Shall not describe or refer to itself using the terms “licensed,” “approved,” or “accredited;” and

2.        May describe or refer to itself using the terms “condition- ally licensed” or “conditional license.”

H.  The Board may conduct an inspection, pursuant to A.R.S. § 41-1009, of a licensee’s place of business to determine compli- ance with the requirements of this Article.

I.   In addition to the grounds for disciplinary action in A.R.S. § 32-3051, the Board may discipline a licensee that:

1.        Violates the requirements in subsection (E), or

2.        Intentionally or negligently misrepresents any material information in documents or testimony presented to the Board.

Historical Note

Adopted effective June 27, 1985 (Supp. 85-3). Amended

effective October 10, 1997 (Supp. 97-4). Amended by

final rulemaking at 11 A.A.R. 2262, effective August 6,

2005 (Supp. 05-2).